TRADEWEB MARKETS INC-CLASS A (TW) Stock Fundamental Analysis
NASDAQ:TW - Nasdaq - US8926721064 - Common Stock
Overall TW gets a fundamental rating of 6 out of 10. We evaluated TW against 224 industry peers in the Capital Markets industry. While TW has a great health rating, its profitability is only average at the moment. TW shows excellent growth, but is valued quite expensive already. These ratings could make TW a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
TW had positive earnings in the past year.
TW had a positive operating cash flow in the past year.
In the past 5 years TW has always been profitable.
In the past 5 years TW always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.11%, TW is doing good in the industry, outperforming 77.63% of the companies in the same industry.
TW has a Return On Equity of 7.86%. This is comparable to the rest of the industry: TW outperforms 42.92% of its industry peers.
TW has a Return On Invested Capital of 7.47%. This is in the better half of the industry: TW outperforms 77.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TW is in line with the industry average of 6.66%.
The last Return On Invested Capital (7.47%) for TW is above the 3 year average (5.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 7.86% | ||
| ROIC | 7.47% |
ROA(3y)4.63%
ROA(5y)3.69%
ROE(3y)5.97%
ROE(5y)4.85%
ROIC(3y)5.53%
ROIC(5y)4.7%
1.3 Margins
With a decent Profit Margin value of 27.46%, TW is doing good in the industry, outperforming 69.86% of the companies in the same industry.
TW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 38.83%, TW is in the better half of the industry, outperforming 65.75% of the companies in the same industry.
In the last couple of years the Operating Margin of TW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.83% | ||
| PM (TTM) | 27.46% | ||
| GM | N/A |
OM growth 3Y8.57%
OM growth 5Y7.58%
PM growth 3Y13.49%
PM growth 5Y2.34%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, TW has more shares outstanding
The number of shares outstanding for TW has been increased compared to 5 years ago.
TW has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.88 indicates that TW is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.88, TW belongs to the best of the industry, outperforming 94.98% of the companies in the same industry.
There is no outstanding debt for TW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.88 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TW has a Current Ratio of 3.00. This indicates that TW is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.00, TW is in the better half of the industry, outperforming 78.54% of the companies in the same industry.
TW has a Quick Ratio of 3.00. This indicates that TW is financially healthy and has no problem in meeting its short term obligations.
TW's Quick ratio of 3.00 is fine compared to the rest of the industry. TW outperforms 78.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3 | ||
| Quick Ratio | 3 |
3. Growth
3.1 Past
TW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
Measured over the past years, TW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.93% on average per year.
TW shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.45%.
TW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.27% yearly.
EPS 1Y (TTM)33.33%
EPS 3Y19.76%
EPS 5Y18.93%
EPS Q2Q%36.36%
Revenue 1Y (TTM)29.45%
Revenue growth 3Y14.45%
Revenue growth 5Y15.27%
Sales Q2Q%36.72%
3.2 Future
TW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.71% yearly.
The Revenue is expected to grow by 13.06% on average over the next years. This is quite good.
EPS Next Y32.93%
EPS Next 2Y23.37%
EPS Next 3Y19.47%
EPS Next 5Y18.71%
Revenue Next Year29.75%
Revenue Next 2Y22.77%
Revenue Next 3Y18.64%
Revenue Next 5Y13.06%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 45.68, the valuation of TW can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TW indicates a slightly more expensive valuation: TW is more expensive than 79.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. TW is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 37.35, TW can be considered very expensive at the moment.
TW's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TW is more expensive than 77.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, TW is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.68 | ||
| Fwd PE | 37.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TW indicates a somewhat cheap valuation: TW is cheaper than 61.19% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.19 | ||
| EV/EBITDA | 31.03 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TW may justify a higher PE ratio.
A more expensive valuation may be justified as TW's earnings are expected to grow with 19.47% in the coming years.
PEG (NY)1.39
PEG (5Y)2.41
EPS Next 2Y23.37%
EPS Next 3Y19.47%
5. Dividend
5.1 Amount
TW has a yearly dividend return of 0.30%, which is pretty low.
TW's Dividend Yield is slightly below the industry average, which is at 9.45.
Compared to an average S&P500 Dividend Yield of 2.28, TW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
5.2 History
On average, the dividend of TW grows each year by 10.06%, which is quite nice.
TW has been paying a dividend for over 5 years, so it has already some track record.
TW has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)10.06%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
18.52% of the earnings are spent on dividend by TW. This is a low number and sustainable payout ratio.
TW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.52%
EPS Next 2Y23.37%
EPS Next 3Y19.47%
TRADEWEB MARKETS INC-CLASS A
NASDAQ:TW (1/21/2025, 8:00:02 PM)
After market: 127.91 0 (0%)127.91
-1.11 (-0.86%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners102.68%
Inst Owner Change0.16%
Ins Owners0.11%
Ins Owner Change-0.58%
Market Cap27.27B
Analysts81.74
Price Target152.2 (18.99%)
Short Float %1.28%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
Yearly Dividend0.32
Dividend Growth(5Y)10.06%
DP18.52%
Div Incr Years2
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.83%
Min EPS beat(2)-4.05%
Max EPS beat(2)-1.6%
EPS beat(4)0
Avg EPS beat(4)-2.64%
Min EPS beat(4)-4.05%
Max EPS beat(4)-1.6%
EPS beat(8)2
Avg EPS beat(8)-1.52%
EPS beat(12)3
Avg EPS beat(12)-1.61%
EPS beat(16)3
Avg EPS beat(16)-1.76%
Revenue beat(2)0
Avg Revenue beat(2)-3.41%
Min Revenue beat(2)-3.78%
Max Revenue beat(2)-3.04%
Revenue beat(4)0
Avg Revenue beat(4)-3.41%
Min Revenue beat(4)-3.78%
Max Revenue beat(4)-3.04%
Revenue beat(8)0
Avg Revenue beat(8)-3.07%
Revenue beat(12)0
Avg Revenue beat(12)-3.08%
Revenue beat(16)0
Avg Revenue beat(16)-2.75%
PT rev (1m)2.86%
PT rev (3m)20.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.62%
EPS NY rev (1m)0%
EPS NY rev (3m)4.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)13.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.68 | ||
| Fwd PE | 37.35 | ||
| P/S | 16.7 | ||
| P/FCF | 34.19 | ||
| P/OCF | 31.69 | ||
| P/B | 4.78 | ||
| P/tB | 29.31 | ||
| EV/EBITDA | 31.03 |
EPS(TTM)2.8
EY2.19%
EPS(NY)3.42
Fwd EY2.68%
FCF(TTM)3.74
FCFY2.92%
OCF(TTM)4.04
OCFY3.16%
SpS7.66
BVpS26.74
TBVpS4.36
PEG (NY)1.39
PEG (5Y)2.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 7.86% | ||
| ROCE | 9.4% | ||
| ROIC | 7.47% | ||
| ROICexc | 9.15% | ||
| ROICexgc | 77.97% | ||
| OM | 38.83% | ||
| PM (TTM) | 27.46% | ||
| GM | N/A | ||
| FCFM | 48.84% |
ROA(3y)4.63%
ROA(5y)3.69%
ROE(3y)5.97%
ROE(5y)4.85%
ROIC(3y)5.53%
ROIC(5y)4.7%
ROICexc(3y)7.13%
ROICexc(5y)5.86%
ROICexgc(3y)52.15%
ROICexgc(5y)52.08%
ROCE(3y)6.98%
ROCE(5y)5.93%
ROICexcg growth 3Y14.13%
ROICexcg growth 5YN/A
ROICexc growth 3Y23.8%
ROICexc growth 5Y21.26%
OM growth 3Y8.57%
OM growth 5Y7.58%
PM growth 3Y13.49%
PM growth 5Y2.34%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 30.83% | ||
| Cap/Sales | 3.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.61% | ||
| Profit Quality | 177.9% | ||
| Current Ratio | 3 | ||
| Quick Ratio | 3 | ||
| Altman-Z | 10.88 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)32.29%
Cap/Depr(5y)31.29%
Cap/Sales(3y)4.81%
Cap/Sales(5y)4.99%
Profit Quality(3y)201.77%
Profit Quality(5y)232.86%
High Growth Momentum
Growth
EPS 1Y (TTM)33.33%
EPS 3Y19.76%
EPS 5Y18.93%
EPS Q2Q%36.36%
EPS Next Y32.93%
EPS Next 2Y23.37%
EPS Next 3Y19.47%
EPS Next 5Y18.71%
Revenue 1Y (TTM)29.45%
Revenue growth 3Y14.45%
Revenue growth 5Y15.27%
Sales Q2Q%36.72%
Revenue Next Year29.75%
Revenue Next 2Y22.77%
Revenue Next 3Y18.64%
Revenue Next 5Y13.06%
EBIT growth 1Y39.28%
EBIT growth 3Y24.25%
EBIT growth 5Y24.01%
EBIT Next Year37.9%
EBIT Next 3Y22.59%
EBIT Next 5Y15.67%
FCF growth 1Y43.63%
FCF growth 3Y19.53%
FCF growth 5Y23.8%
OCF growth 1Y39.6%
OCF growth 3Y18.96%
OCF growth 5Y21.88%